Georgia Student Finance Commission President Tim Connell says, tuition also has outpaced income growth, forcing students to borrow more.

"It's directly reflective of the economy," Connell says. "People who graduate from college or who drop out of college without completing college and are due to go back into repayment, if they can't find a job, then it certainly makes it more difficult for them to initiate repayment on their student loan."

Georgia's default rate is slightly higher than the national rate of 8.8% percent.